KANSAS CITY, Mo. - The Missouri Attorney General's office announced a judgment against Carsafe LLC, formally called Dealer Preferred Warranties. It owes more than $22,000 in fines and restitution to Missouri consumers.
The judgment cited deceptive sales techniques, where the company would confuse customers into believing they were buying an extended warranty with a company associated with their car dealership.
"They would sell by telephone, and then often times what they were telling people by phone didn't measure up when the consumer actually got the contract in the mail," said Doug Ommen, the director of the Missouri Attorney General's Consumer Protection Bureau
Consumers would have up to 30 days to cancel, but often did not receive their written contract until after that 30 day period.
Now, if the company completes the contract with the consumer by phone, the company must record all transactions and must mail the written contract to the customer within three business days.
"Don't agree to the terms of the contract until you have the time and opportunity to actually review it," Ommen told Call For Action.
Before entering into a service contract, make sure the company is authorized to do business in the state of Missouri. You can check that with the Missouri's Department of Insurance .
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